Oct 8, 2008

Forget What You Know About Michigan Drivers

A few weeks ago we told you that Michigan’s drivers were among the safest in the nation. Well, not so fast. Allstate, which publishes the Allstate America’s Best Drivers Report, released on July 1, has taken a second look at its data and decided Michigan drivers aren’t so good after all. Allstate recently admitted that the report findings did not take into account that Michigan is the only state with a no-fault property damage system. In fact, had equivalent Michigan data been included in the overall study, Michigan’s cities would have finished much lower in the rankings among U.S. cities, with the top Michigan city placing 139th on the list -- a finding that coincides with our personal experiences with Michigan drivers.

“Recently, Allstate actuaries determined that a discrepancy exists because unlike the other 48 states where Allstate does business, Michigan’s property damage ledger as a general rule does not contain payouts for damages of other vehicles if an Allstate insured was involved in a moving vehicle accident,” said David Field, regional counsel for Allstate in Michigan. “The distinction between Michigan’s current system and that in other states is probably more clearly understood when the costs for such coverages are compared. In Michigan, it costs around $25 for this type of coverage, while in other states it runs about $150.”

Allstate’s auto policies represent about 12 percent of all U.S. auto policies, making the report a realistic snapshot of what’s happening on America’s roadways. Since auto collisions in Michigan were not properly accounted for, the data was skewed to generate a more favorable ranking for Michigan cities than was actually warranted.

“We regret that Allstate’s America’s Best Drivers Report was inaccurate,” said Field. “The fact is, however, Michigan drivers are required by law to purchase a very expensive insurance package. We are working with other interested parties to improve Michigan’s unique no-fault auto insurance system to give drivers more choices and lower costs. We believe it is important to call attention to how the current system impacts Michigan cities’ rankings on the previously published report.”